Which of the following factors can influence exchange rates?

The health of the economy and interest rates significantly influence exchange rates because they are fundamental indicators of a country's economic stability and growth potential. When a country's economy is performing well, characterized by strong GDP growth, low unemployment, and high consumer confidence, its currency tends to strengthen as investors seek to invest in that economy.

Interest rates play a crucial role as well; when a country's central bank raises interest rates, it often leads to an appreciation of that currency. Higher interest rates offer better returns on investments denominated in that currency, attracting foreign investment and increasing demand for the currency. Conversely, lower interest rates can lead to currency depreciation.

While other factors can influence exchange rates, such as employment rates and external events like weather patterns or social media trends, the health of the economy and interest rates are more direct and consistent contributors to currency valuation in the foreign exchange market.